Video Game Stock Portfolio has 20% Return for the First 3 Months of 2023

Video Game Stock Portfolio has 20% Return for the First 3 Months of 2023

Video game stocks did well in the first quarter of 2023.  Stocks in the general video game stock index were up 15% while stocks in the DFC Intelligence Video Game Stock Portfolio showed a 20% return between the first week of January through early April.  This compares with only a 7% increase for the S&P 500. Hardware companies had the strongest gains with Turtle Beach (NASDAQ: HEAR) increasing 52% and Corsai.....
Sega Acquires Angry Bird Developer Rovio

Sega Acquires Angry Bird Developer Rovio

Sega Sammy Holdings (6460.T-JP: Tokyo) has announced plans to acquire Finland-based Rovio Entertainment for 706 million euros (about $776 million).  The tender offer bid will be launched around May 8.  The offer represents a 19% premium over the current stock price. Analysis Rovio is noted for the Angry Birds franchise which in recent years has enjoyed most of its success on mobile platforms.  Angry Birds was released in 2009 and was an early mobile.....
U.K. CMA Narrows Scope of Microsoft’s Activision Blizzard Purchase

U.K. CMA Narrows Scope of Microsoft’s Activision Blizzard Purchase

The U.K. Competition and Markets Authority (CMA) has issued updated provisional findings to narrow its scope of review in the proposed Microsoft acquisition of Activision Blizzard.  The new findings reach the provisional conclusion that overall the transaction will not result in a substantial lessening of competition for console gaming in the U.K. market This new finding d.....
Tencent International Game Revenue Increases

Tencent International Game Revenue Increases

For fiscal year 2022 ending 12/31/22, Tencent saw revenue from games decline 2% to RMB 171 billion (about $25.9 billion).  This was a 2% decline from 2021 when game revenue was RMB 174 billion.  However, international game revenue was up 3% to RMB 46.9 billion (about $7.1 billion).  Domestic game revenue for 2022 declined 3.7%. to RMB 124 billion. The decline was in mobile game revenue (including social network mobile games) which decreased 2.6% to RMB 161 billion (about.....
Nvidia Grows Beyond Games

Nvidia Grows Beyond Games

On March 22, DFC Intelligence had the privilege to join a private analyst briefing with Nvidia CEO Jensen Huang.  This was an opportunity to ask Huang detailed questions following his keynote at the Nvidia GTC conference the previous day. The focus was almost entirely on Nvidia’s future in AI.  The key takeaway from the keynote and briefing was that Nvidia is in the process of its most expansive growth of business model ever.  That expansion is into AI which is hitting.....
Nvidia Game Revenue Declines 28% in FY 2023

Nvidia Game Revenue Declines 28% in FY 2023

For the fiscal year ending January 29, 2023, Nvidia (NASDAQ: NVDA) saw its gaming revenue decline 28% from FY 2022 to $9.1 billion.  Overall annual revenue was flat at $27 billion.  For fiscal 2023 net income was down 55% YOY to $4.4 billion. Analysis The past year was rough for Nvidia, but the company is clearly poised for strong growth in coming quarters.  Investors are once again bullish as the company stands to benefit from the growth of the.....
Paradox Interactive Reveals Cities: Skylines II

Paradox Interactive Reveals Cities: Skylines II

Sweden-based Paradox Interactive (PDX.ST) revealed several products for a 2023 release at the Paradox Announcement Show.  The announcement included 3 full games, The Lamplighters League, Life By You and Cities: Skylines II.  There were also expansion packs announced for Crusader Kings III and Europa Universalis IV. Analysis Cities: Skylines was a surprise success when it launche.....
Square Enix CEO Steps Down

Square Enix CEO Steps Down

Square Enix (9684.T-JP: Tokyo) CEO and president Yosuke Matsuda is stepping down.  He will be replaced by Takashi Kiryu, the former chief strategy officer. The change will be finalized at the Annual Shareholders’ Meeting in May. Analysis Matsuda had been a major proponent of NFT and blockchain games.   After a rough 2022 for the category, Matsuda reemphasized the company focus on NFTs in a .....